Ann: Woodside Enters FEED for Pluto Train 2 Project, page-7

A lot depends on the contract pricing. Debt is a problem if you are hugely exposed to the oil price downside. Woodside historically has had very conservative contract pricing underpinning their LNG developments. I refer here to slide 17 of the 2015 IBD pack https://files.woodside/docs/default-source/asx-announcements/asx-announcements/21-05-2015-2015-investor-briefing---slide-pack.pdf?sfvrsn=56b29c94_6

I use this slide probably more than it's intended in my modelling of LNG prices vs oil prices for WPL... If Scarborough has contract pricing similar to this then slipping up a bit in debt isn't much of an issue. Still I prefer the mechanism of using dividend investment during CapEX spending - it means any potential cost overruns you don't have to run back and do another raise. Remember WPL raised for Pluto train 1 and had an dividend reinvestment plan.